The governor of the Federal Reserve, Lisa Cook, sued President Donald Trump on Thursday, the beginning of a historical legal battle about what she calls Trump’s efforts “unprecedented and illegal” to get her out of the central bank and the committee that makes decisions about the interest rates of the nation.
Cook also seeks a “emergency temporary restriction order, to remain in force until the court may consider further the merits of its claims.”
In his lawsuit, Cook seeks a “statement that President Trump’s president of 2025 supposedly shoots … is illegal and null and that Governor Cook remains an active member of the Board of Governors of the Federal Reserve.”
Cook also seeks a declaration of the court that “that an accusation without the foundation of mortgage fraud before the confirmation of a governor is not a cause of elimination.” Trump has tried to eliminate it on the accusations, which were first imposed by the federal director of the Housing Finance Authority, Bill Ablicte, on August 20.
Cook is the first black woman to serve at the Board of what is considered the most important central bank in the world. She has not been accused of any crime.
According to the Federal Reserve Law, the only reason why the governors of the Federal Reserve can be withdrawn from their positions is “for cause”, or some type of irregularities. Trump’s letter to Cook said the administration believes that “there may have made false statements about one or more mortgage requests.”
“The standard ‘for cause’ is not defined in the [Federal Reserve Act]But the statutes that establish the standard for other independent agencies expressly limit the cause to the standard that … there must be a specific finding of “inefficiency, negligence of duty or embezzlement in office,” says Thursday’s presentation.
“President Trump did not intend to withdraw Governor Cook for ‘inefficiency, negligence of duty or embezzlement in office’, or for any action that was carried out in the course of his official duties.”
Cook’s demand also appoints the Board of Governors and President of the Jerome Powell Federal Reserve as accused because the lawsuit says they are obliged to take measures to carry out a legal removal order of the president.
The Fed, in a statement on Tuesday, said that “Lisa Cook has indicated through her personal lawyer who will immediately challenge this action in the Court and will seek a judicial decision that confirms her ability to continue fulfilling her responsibilities as a member confirmed by the Senate of the Board of Governors of the Federal Reserve System. As always, the Federal Reserve will annul any decision of the Court.”
The Fed did not immediately respond to a comment on the demand filed by Cook on Thursday.
The White House said Trump “exercised his legal authority to eliminate a governor at the Federal Board of Governors for Cause.”
His demand also says that “an independent federal reserve is essential for a stable economy.”
“An independent Federal Reserve also prevents presidential administrations from using monetary policy for selfish political purposes in other ways, such as ensuring that the Government cannot simply print more money to finance debt. This practice, when it is not controlled, can lead to economic collapse and hyperinflation,” its case continues.
The lawsuit indicates that a recent decision of the Supreme Court made it clear that the Fed is an “exclusively structured and quasi -private entity” that has its own different historical tradition.
“Allowing the president to eliminate the members of the Board about the policy disagreements would also make the independence of the Board illustrates,” adds the demand.
Trump’s elimination attempt from cook and pulte accusations are the last movements in a relentless pressure campaign against Fed, Powell and now Cook. Trump has sought lower interest rates since before assuming the position for a second mandate and has attacked Powell and the Fed fees committee almost constantly.
Trump has said that the Board should be “embarrassed” by itself and has shot dozens more insults to Powell in interviews and social networks, calling everything, from “stupid” to someone who “hates me” and a person of “low” iq “.
Cook’s demand cites Trump’s long history of attacks against the Fed and the president’s many threats this year to say goodbye to Powell.
The accusations of pulte against cook are echoed closely claims without foundation against other high Democrats.
“Each of the director’s criminal references has been significantly, at one time or another, political objectives of the anger of President Trump before any accusation of mortgage fraud,” Cook’s lawyers write.
